Financial Advisers Struggle With Arch Cru.

FSA steps in to increase the pressure.

In the past few days the city watchdog the FSA has increased the pressure on IFA's that arranged investments in the failed Arch Cru investment group which had taken many millions of pounds from consumers many of whom had been recommended to it by IFA's.

The big problem is the now these IFA's are having to pick up the compensation bill and rightly so, however the issue is that many of these IFA firms do not have the capital in order to fund the compensation due.  A sorry mess indeed.

Importantly there are some major issues with the advice from any IFA that recommended Arch Cru as an investment. Due diligence and an little research would have confirmed that perhaps it was not ideal.

There are more than 85 Financial Advisory Firms that had recommended Arch Cru and of course these are legally bound to put in place compensation as recommended by the city watchdog. Only these firms do not have the money and will be forced to claim on their Professional Indemnity insurances, cover they are forced to have. The key is that for a good number of these there will be a problem getting a claim agreed (for reasons to complex to cover here).

The problem still exists with Arch Cru investments and the problems with IFA firms will not go away until they finally accept that the commission model was fatally flawed historically. Something I am sure not many agree with.

If you have investments in the failed Arch Cru group and would like some genuine advice please contact us for further guidance.

Arch Cru Investors